Nigeria’s Top Minister Suggests Government Should Review Policies Against Cryptocurrencies

Prince Clem Agba, a Nigerian state minister for budget and national planning has extended his support for the budding crypto space before the Nigerian government. Earlier this year, the central bank of Nigeria banned Bitcoin transactions facilitated by commercial lending institutions. However, Agba believes that imposing anti-crypto regulations in the country could lead to unfortunate consequences in the future. The minister’s support for cryptocurrencies comes as the Nigerian economy is struggling to weather inflation due to slow economic activities, COVID problems.

“Uncertainty in regulating cryptocurrencies risks denying governments and citizens the opportunity to maximize opportunities from technology,” Bloomberg said. report quoted Agba as saying.

African Development Bank Group (ADBG), in a research has revealed that the Nigerian economy enters recession in 2020 due to falling crude oil prices due to falling global demand and Coronavirus containment measures.

The inflation rate also rises to 12.8% in 2020 from 11.4% in 2019.

Amid this economic turmoil, young Nigerians and other Internet-backed African nations have begun experimenting with crypto space.

The crypto market in Nigeria, Kenya, Tanzania and South Africa together saw a growth of 1,200%, reaching a market valuation of $105.6 billion (approximately Rs 775) in one year, a report by Chainalysis announced in September.

Even after the central bank of Nigeria ruled against legalizing cryptocurrency trading, the country introduced its blockchain-based “central bank digital currency” (CBDC) summon eNaira. Directly controlled by the Central Bank of Nigeria, eNaira is subject to daily transaction limits and other tiers.

Due to the decentralized and untraceable nature of electronic money, as well as market volatility, some countries include India and Russia among others are refraining from legalizing them.